Florida realtors expressed concern about the House GOP tax reform bill. They believe it could reduce the home values in the State by 13%.
Early this month, House Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady unveiled the Tax Cuts and Jobs Act.
Maria Wells, the president of Florida Realtors said they are worried about certain proposals under the House GOP tax reform bill. They include the proposals to limit the home mortgage interest deduction, to end write-offs for property taxes, and to increase capital gains taxes on home sales.
Realtors’ concerns about GOP tax reform bill
Under the House GOP tax reform bill, taxpayers can only claim interest paid on home mortgages worth $500,000. Currently, homeowners can claim interest paid on mortgages worth $1 million.
Additionally, the bill does not allow mortgage-interest deductions for second homes or home-equity loans. At present, homeowners can deduct mortgage interest rates on their second or vacation homes.
Furthermore, the GOP tax reform legislation will cap the state and local tax (SALT) deduction to $10,000 a year. It will also put new restrictions on the current capital gains exemption homeowners use after selling their home.
Home ownership will be off the table for middle-class families
During a news conference, Wells said the GOP proposals “would affect the economy in all sorts of ways.” She added, “We know that housing is the canary in the coal mine.” The news conference was held at the offices of the Realtors of the Palm Beaches and Greater Fort Lauderdale on Monday.
According to Florida realtors, the GOP tax reform bill will discourage home ownership. Wells said, “We do not want to become a culture of renters. We want to become a culture of homeowners.”
On the other hand, Democratic U.S. Rep. Lois Frankel commented that Floridians will likely “see a significant drop” in home values. Why? He said “because that the demand for housing will go down.”
In a statement on Nov. 2, the National Realtors Association (NRA) said it does not support the House GOP tax reform bill. Its president William Brown said the bill will “take home ownership off the table for millions of middle-class families.”